August 3, 2021
Company name: ES-CON Japan Ltd.
Representative: Takatoshi Ito,President & Representative Director(TSE 1st Section, code: 8892)

Notice on Investment and Business Participation in the Commercial Complex
Value-add Project in Hawaii
ES-CON Japan Ltd. (hereinafter “ES-CON Japan”) announces that it has decided to participate in Waikiki
Galleria Tower project, a commercial complex value-add project located in Honolulu, which is primarily
conducted by BlackSand Capital, LLC (hereinafter “BlackSand Capital”), a real estate private equity firm inHawaii. ES-CON Japan will also enter into a strategic advisory contract for this project.
1. Background and purpose
Waikiki Galleria Tower (the "Property") is located in the resort area of Honolulu, where it is the center ofhotels and commerce, facing the Kalakaua Avenue, the main street of Waikiki, and surrounding areas arehighly scarce locations with luxury brand stores.
ES-CON Japan has decided to invest in WGT, L.P. ("SPE"), a special-purpose entity formed by BlackSand
Capital to acquire the property and to replace and change the use of the tenant in order to increase thevalue of the property, considering the scarcity value of the property and the recovery trend of the number oftourists in Hawaii.
BlackSand Capital, the principal entity of the project is a real estate private equity firm distinguished by its
integrity, innovation, flexibility, and intimate knowledge of the Hawaii market, founded in 2010, and thecompany's Chairman CEO is Mr. B.J. Kobayashi, founder of the Kobayashi Group, which has a track recordof developing and investing in real estate in Hawaii, including golf courses, resorts, housing and schools.
ES-CON Japan will not only invest in the SPE, but also, as a strategic international development advisor
in this project, ES-CON Japan will provide advice and support on the development, design, operation andmanagement of the entire property, as well as new tenant strategies in Japan, which will provide thebusiness know-how that ES-CON Japan have cultivated up to now.
In February 2019, ES-CON Japan invested in Hawaii focused closed-end real estate investment fund, inwhich BlackSand Capital is the sponsor, and began overseas operations as an initiative to develop new
business fields in anticipation of the times. Since then, ES-CON Japan have participated in the residential
development business in Bangkok, Thailand, and in Los Angeles County, California, and are steadily
promoting overseas operations despite the impact of the spread of the Covid-19. Through this investment,
ES-CON Japan aims to further strengthen the relationships with local partner companies and create
development business opportunities in Hawaii. At the same time, ES-CON Japan will develop amulti-faceted real estate business on a global scale and will contribute to the society.

12. Project Overview
Waikiki Galleria Tower project
Property nameWaikiki Galleria Tower
Address2222 Kalakaua Ave, Honolulu, Hawaii 96915 USA
Application
Commercial facilities (1st and 2nd floor),(Current)
Parking lots (3rd to 5th floors),Offices (6th to 16th floors)
Site area
4,315.90 m2
Total floor area
23,318.65 m2
Year ofBuilt in 1966
completion of the (Large-scale repairs completed in 2001 and 2009)building
Plannedinvestment
US$ 5.0 Million
amount byApproximately 550 million yen
ES-CON Japan
Principal Entity
BlackSand Capital, LLC
Representative： Bert “BJ” A. Kobayashi, JR (Chariman, CEO and a founder)
Address：2270 Kalakaua Avenue, Suite 1788, Honolulu, Hawaii 96815
Business Summary:
A real estate private equity firm distinguished by its integrity, innovation, flexibility, andintimate knowledge of the Hawaii market, founded in 2010.
Specializing in Hawaii and making opportunistic investments in equity, preferred
equity and debt interests in all real estate areas, intended to provide attractiverisk-adjusted returns.
Investment period

5 years from the last closing dateSubsidiary overview
Subsidiary name
ESCON USA Ⅲ,LLC
Address
Delaware, USAManagerToru Kumaki

photo of the property

3. Impact on operating results
The impact of the investment on ES-CON Japan's operating results for the current fiscal year iscurrently negligible.
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